No one has heard from Luis Enrique Villalobos Camacho since Oct. 18.
He has been in hiding.

Louis Milanes vanished along with other executives of his Savings Unlimited
the weekend of Nov. 23.

Also unaccounted for is the estimated $1 billion that investors left
in the care of Villalobos and the estimated $260 million that was in the
care of Milanes.

Both men are objects of international police searches. Each must be
considered innocent until proven guilty. But each should be in Costa Rica
to answer allegations about their defunct investment businesses.

Toward that end, A.M. Costa Rica today pledges $500 for information
leading to the detention anywhere in the world of either Villalobos or
Milanes. This is a minimal reward, but the owners of A.M. Costa Rica hope
that others will join in pledging sums that will bring the search to a
quick resolution.

Any information should be given to the relevant police agencies, not
to A.M. Costa Rica.

In the case of money posted by A.M. Costa Rica, the decision of the
editor will be final on the disposition of the reward. At present,
there are no other financial incentives for individuals to supply police
with information. Costa Rica does not usually post such rewards.

Some say that the investment firm owners have
fled to distant corners of the world. Some say that Villalobos is in Romania,
the native country of his wife. A.M. Costa Rica has readers in 89 countries
of the world, including Romania. Readers are encouraged to use the copy
function of their Internet browser to duplicate the photos above that were
supplied by a police agency.

Readers also are free to link any Internet pages specifically to today’s
edition for the purpose of distributing the photos of the two.

Some readers will question the publication of the photo of Villalobos
adjacent to that of Milanes. Many investors in the Villalobos high-interest
firm believe that Villalobos legitimately is in hiding to avoid over-aggressive
prosecutors here. Nevertheless, the law is the law.

In addition, some former investors are suffering serious financial,
physical and mental problems here in Costa Rica and elsewhere because Villalobos
cut off interest payments in September. The time has run out on giving
him the benefit of the doubt because some of his investors are near death,
in part because of his actions.

Let’s bring them home for the holidays.

-Jay Brodelleditor of A.M. Costa Rica

Life after Villalobos presents some challenges

By the A.M. Costa Rica staff

What do investors do now that their life savings have vanished and their
income is cut off.

Some are returning to their home countries to seek the help of relatives
and friends. Others have entered the local Costa Rican job market with
some success.

However, some believe that they are either too old or too unskilled
to compete here. And others are unwilling to accept a reasonable Costa
Rican salary instead of the thousands in cash they were getting every month
from the Villalobos investment firm or from Savings Unlimited. Both paid
between 2.8 and 4 percent per month.

Costa Rica law forbids persons here as tourists or with pensionado or
rentista immigration status from working. These laws are widely ignored,
and Costa Rica’s flourishing sportsbook industry thrives on illegal North
American workers. Many young North
American English teachers are working illegally on tourist visas.

However, as more foreign residents choose to enter the job market, the
backlash from displaced Costa Ricans probably will spur immigration officials
into a crackdown. So would-be foreign workers better have their papers
in order.

Costa Rica does permit foreign residents to own their own corporation.
So foreigners with pensionado or rentista immigration status can operate
their own business, be it something involved with the Internet, a store,
a restaurant or a consulting firm. Frequently, a foreigner without a work
permit will perform a job and then ask for payment to his or her corporation.
That is stretching the law but allows the foreigner to take a covert salary
in the form of corporate earnings.

We are happy to publicize the stories of investors who are coping. We
begin one such story today.

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BLOOD DONORS DESPERATELY
NEEDED NOW

My husband, Dennis Gilbride needs
immediate triple bypass open heart surgery. Our doctor expects to be able
to perform this life-saving surgery at the end of this week, probably Saturday.
Dennis has a rare blood type (O negative) and the doctor said that if people
will donate blood early this week, he can probably trade whatever blood
is donated for the type that my husband needs. A lot of blood is needed
for this surgery. Please help to save my husband’s life. It does not matter
what your blood type is. Please donate blood early this week at the Clinica
Biblica blood bank between 7 a.m. and 3 p.m., and tell the staff when
you donate that you’re donating blood for "Dennis Gilbride who is Dr.
Elliott Garita’s patient." Thank you, and God bless you.

This talented investor is turning
to the world of art

By the A.M. Costa Rica staff

Gina Vela is one of those investors who have been cut off from their
monthly income. She is not whining or betting on longshots. She has a plan
to boost her cash flow, and her plan involves art.

Mrs. Vela is a Costa Rican-American who returned to the land of her
birth in 1995. She brought her husband Thomas, who had worked as a ship’s
captain in California.

Her hobby of painting has gained urgency since the Villalobos investment
firm went out of business.

She threw herself into oil painting when she arrived, took a few university
classes and filled up their La Trinidad de Moravia home with her paintings.
She might never have thought of the commercial side of art had she and
her husband not lost their cash investment.

But now she is anxious to tackle the market both here and in the United
States. She has an unusual style that can be primitive, surrealistic or
impressionistic. She takes from the current news and also from her childhood.

One painting of a family asleep in the same bed is a childhood memory
when her Tico father brought the family to California in 1960 where he
worked on the tuna fleet. She has eight brothers and sisters.

Another painting shows a woman with an iguana seated on her head. That
reminded Mrs. Vela of her childhood years near Orotina where she ate plates
of alleged "chicken" that really was iguana. She loved the critters and
was shaken when she asked for a chicken wing only to find that this chicken
didn’t have wings.

Other paintings blend the current news. Princess Diana appears as a
topless mermaid. The best description is powerful, colorful and textured.

Although Mrs. Vela says that she does not remember the incidents, a
childhood friend said that she used to win school art contests. One of
her works was selected as one of 12 the University of

Family sleeping scene from life

A.M. Costa Rica/Saray Ramírez
Vindas

Mrs. Vela with copies of her works

Costa Rica sent to an exhibition this year for el Dia de la Mujer. And
she once won 1,000 colons in an art contest.

Her biggest fans are her three children who live in the United States.
One, Ray, the youngest, appears as Jesus Christ in one of her more representational
paintings.

Now the plan is to learn something about marketing art and begin creating
works that will be of interest to tourists and collectors. She expects
to have a local show in January.

CARACAS, Venezuela — Amid daily anti-government protests and an opposition-led
national strike, Venezuela is enduring a running battle between the government
and the country's news media.

Turn on a television in Caracas, and you will be bombarded with public
service-style announcements by groups opposed to Venezuelan President Hugo
Chavez.

One advertisement commands people to take to the streets en masse to
block roads, highways and entire neighborhoods. The goal is to bring Caracas
to a standstill in support of a 17-day opposition-led national strike.
The message ends with a direct call for President Chavez' ouster.

At night, Venezuela's privately-owned all-news channel, Globovision,
reviews the protests of the day with a distinctly pro-opposition edge.
"Venezuela's democratic society has achieved yet another victory in its
campaign to demand the exit of Mr. Chavez," said one announcer. "The opposition
successfully clogged the streets and, despite the synchronized mobilization
of pro-Chavez elements, majority opposition forces managed to avoid violence,"
another announcer reported.

Nowhere does the program mention that, on that particular day, rock
and bottle hurling protesters squared off with police who responded with
tear gas.

The anti-government tilt to the news has not gone unnoticed by President
Chavez, who recently denounced the country's private television stations.
Chavez listed the stations, including Globovision, and accused them of
conspiring against the government. Blasting them as shameless liars, he
said the stations and their owners are attempting to destabilize the country
and undermine the rule of law.

Globovision President Guillermo Zuloaga scoffs at the accusation. "The
president considers us his enemy," he said. "But we are not his enemy.
We are showing the people what is happening in Venezuela. President Chavez'
real enemy is the

people who, armed with information,
are aware of what transpires in the country."

Zuloaga said if war has been declared between the government and the
news media, then it was the government that fired the first shot. He points
out that pro-Chavez forces have ransacked television stations, beaten reporters
and destroyed their vehicles, what he describes as a vicious campaign to
silence dissent.

Guillermo Zuloaga admits that the vast majority of the people Globovision
puts on the air belong to the opposition. But, he says, his station is
open to President Chavez or anyone else from the government. He adds that
it has been more than a year since the leftist leader granted an interview
to the domestic news media.

Observers say part of the problem stems from President Chavez' background
as a one-time military officer. "The attitude of the military is, 'I order
and you obey,'" said Adolfo Herrera, director of communications at Venezuela's
Central University in Caracas. He says President Chavez wants to control
what is said about him, and that this is a public relations problem for
his administration.

A leading pro-government deputy in Venezuela's legislature, Tarek William-Saab,
says, in the final analysis, both sides are to blame for the stand-off
between Chavez and the news media.

"The media must report the news with objectivity, while the government
must accept criticisms when they arise," he said. "But, that ideal arrangement
does not exist today in Venezuela." He said the news media is choosing
sides and that this must end for the good of the country.

William-Saab acknowledges that abuses have been committed against news
organizations but denies that President Chavez orchestrated the attacks.

For his part, Globovision President Zuloaga says his reporters are acting
as patriots. "We are not playing political games. We want a prosperous,
democratic Venezuela with a vision for the future where children can grow
and better themselves," he said. "This is the battle and it will be fought
until it is won."

Photo courtesy of the Ministerio de Seguridad
Pública

Cocaine packet hidden in shoe sole

Another traveler heldin airport drug bust

By the A.M. Costa Rica staff

They were not wooden shoes, but the young Dutch woman did have shoes
that were not typical, according to anti-drug police.

They arrested the women, identified by the last name of Keltoum because
they said she had 2.5 kilos of cocaine in the soles of the shoes. That’s
5.5 pounds.

Policía de Control de Drogas arrested the 20-year-old woman at
Juan Santamaría Airport when she arrived on a flight from Panamá.
She was scheduled to depart on a flight to Zurich, Switzerland, with a
stopover in Amsterdam, Holland.

Four women’s shoes in the luggage of the traveler had soles that had
been hollowed out to accommmodate packets of the substance police said
was cocaine. The shoes were the type with very thick soles.

Police noted that she is the sixth Dutch citizen to be grabbed on drug
charges at the airport this year. Police did not say what led them to target
the woman or to search the shoes.

New U.N. torture votehas bigger margin

By the A.M. Costa Rica staff

Costa Rica is considering the passage Wednesday of an anti-torture protocol
by the United Nations as a national triumph.

Roberto Tovar, the chancellor or foreign minister, said the action was
"a resounding diplomatic triumph for Costa Rica that signifies a giant
step in favor of humanity."

The measure passed the U.N. General Assembly with 85 percent of the
nations in favor. This was about 15 percent higher than when the measure
first reached the floor Nov. 7.

A release from the Ministerio de Relaciones Exteriores y Culto said
that work by Costa Rican diplomats at the United Nations caused some nations
that had rejected the measure, such as Cuba, to simply abstain for the
second round of votes. While the United States voted against the measure,
Israel changed its position and voted in favor, the ministry said.

No bull, health officials say

Health officials announced Wednesday that the Zapote bull ring is too
unsafe to permit the traditional bull romp there this Christmas season.
They cited technical legal reasons, too.

The typically Tico bull activities still might be held but elsewhere
and not at the grounds of the big Zapote Christmas festival.

Professional Directory

A.M. Costa Rica's professional directory is where business
people who wish to reach the English-speaking community may invite responses.
If you are interested in being represented here, please contact the
editor.

WASHINGTON, D.C. — The U.S. trade deficit fell in October to $35 billion,
down from the revised figure of $37 billion for September, reflecting a
greater drop in imports than in exports, the Department of Commerce reported.

Exports decreased to $82 billion in October from $82.8 billion the previous
month, while imports fell to $117 billion from $119.9 billion, according
to figures released Wednesday. The drop in imports was due in part to labor
disputes that slowed work and temporarily shut down U.S. ports along the
west coast, according to trade analysts quoted in news reports.

Comprising the overall deficit were a deficit in goods of $39.4 billion
and a surplus in services of $4.4 billion.

While overall U.S. imports fell in October, imports of energy products
rose to $10.4 billion from $9.1 billion in September, reflecting a rise
in both volume and price.

The goods deficit with China decreased from $10.3 billion in September
to $9.5 billion in October, but remained the largest U.S. deficit with
any single country. Exports to China decreased $100 million to $1.9 billion
while imports from that country,

Latin America's economy shrank 0.5 percent overall in 2002, mostly because
of Argentina, Uruguay and Venezuela. The U.N. Economic Commission for Latin
America and the Caribbean reported that per capita GDP in the region was
almost a negative 2 percent.

The commission estimates seven million more people are living in poverty
because of the mostly stagnant economies in Latin America and the Caribbean.
But the report estimates the region's GDP could recover and rise just more
than two percent in 2003.

More Villalobos letters

She says the blamerests with government

Dear A.M. Costa Rica:

WHO IS TO BLAME?

This is an excellent question and we should not forget the answer.

Is it Louis Enrique Villalobos. I don’t think so. Guilty or not of laundering
money, he is not to blame for this crisis.

Is it us so called "greedy investors?" I don’t think we are greedy,
and this crisis is not our fault

Could it possibly be the government of Costa Rica. Yeh, this is the
party that organized the raid and the freeze. What government efficiency
they had.

Ilse Cogen Guadalajara, Mexico

A sharp replyfrom Mr. Hobbs

Dear A.M. Costa Rica:

Perhaps the most interesting point regarding Mr. Eldrell of Tenino,
Washington, castigating my letter to AM Costa Rica, is the stark out-and-out
lack of moral decency and turpitude he exhibits. At the end of the day
his premise is a simple one:

Its OK to knowingly participate, and be a conspirator in a fraud, and
criminal enterprise, in this case a ponzi scheme, as long as you profit
from it. Even if you know it is at the expense of others.

Charming.

Thank you, Mr. Eldrell. I believe you made my previous point about greed
and stupidity in my prior letter most eloquently.

And no, neither I, nor the firm I work for, invested in Enron because
we do have morals and ethics, something appalling lacking in Mr. Eldrell.
We never recommended that anyone else invest in Enron. In fact, quite to
the contrary. Four years ago we issued a report saying that we felt that
Enron had misstated their earnings. We were one of the first.

By the way, Mr. Eldrell, three questions. Did you report this passive-income
windfall to the IRS? Did you put anyone else into the Brothers? And, how's
that doublewide working out for you?

Time to go brush your tooth now.

Charles Hobbs New York, N.Y.

Nash took interest,this reader claims

Dear A.M. Costa Rica:

Your statement in today’s news shows how ridiculous the reporting of
this story has gotten. I should have written sometime ago.

You stated that "Nash's only crime seemed to have been in letting his
$189,000 investment compound to about $1.5 million." That is the figure
arrived at by Mr. Nash's son, an attorney, and a Costa Rican attorney who
sat with computers in hand calculating exponentially how much his investment
would be worth and salivating how much they could get out of the investment.
The $1.5 million figure that has been assumed by them also assumes that
nothing was ever withdrawn from the account at any time.

My wife and I lived in Costa Rica for five years and knew Mr. Keith
Nash quite well. He participated in home Bible studies with us. I recall
how he often tried to persuade me to go on the raw vegetable diet that
he was on. I believe that this diet was a factor in his being hospitalized.

Mr. Nash did, in fact, draw interest. I was not privy to any amounts,
but Mr. Nash was very generous.

After moving back to the U.S., my wife and I returned to CR for a visit.
We went with Rev. Richard Steel and several others to visit Keith in a
nursing home. (I have videos of this visit). A representative of Villalobos
delivered a check to the nursing home to cover his expenses and gave Keith
money for his personal use. In the time that we knew him, Keith never ever
mentioned his son. Interesting that his son should appear and try to get
his money?????

Bill and Lois Quick

Suit against governmentwill bring IRS here

Dear A.M. Costa Rica:

One letter writer made the following quote with respect to the Villalobos
case and suing the government of Costa Rica for a billion dollars.

"The Costa Rican people will pay for this expense like they did in the
Banco Anglo fiasco, and just maybe they will wake up from this deep sleep
of ¨pura vida¨ and pay more attention to their national honor.".

Sadly most people forget when someone sues McDonalds and wins 12 million
dollars for spilt coffee that someone has to pay. That someone is not McDonalds,
it is the customers.

Would anyone really want the Ticos to have to pay for "The Brothers"
debacle? Where I live they get paid at best a few dollars per hour. A tiny
percentage ever had the privilege of "The Brothers" investors who have/had
beautiful homes, nice cars, plenty of travel and entertainment dollars
and an enviable lifestyle. Few Ticos around here could ever afford to eat
in the restaurants here catering to tourists and foreigners. For most,
what is paid for a nice dinner-for-two in a local tourist establishment
is at least a week’s salary, if not two.

I understand the anger that leads to thinking of "an eye for an eye.".
I have friends who have lost almost their entire life savings with the
Brothers, and I empathize with the terrible tragedy, but really, should
Ticos pay for that? I think it would be highly unfair to make them pay
and that is exactly what suing the government MIGHT do, it MIGHT make them
pay.

The bigger possibility is that making a huge lawsuit will definitely
be a direct invitation to the IRS. If anyone wins a large suit against
the government here you can bet the IRS will be standing in line to collect
those back tax dollars. Twenty years ago I got behind with the IRS to the
tune of 6 grand. It had become 30 grand within three years based on fines
and interest. So basically you will win money from one government that
you will likely in turn pay to another one. I hope a billion dollars will
cover your tax debts, because the way their penalty and interest system
works has a striking similarity to "The Brothers." The money compounds
at amazing rates, and your debt grows like the rainforest in the rainy
season.

Frankly, owing the IRS money is not a pleasant experience. They demanded
that I pay half of my monthly salary to them, which at the time was about
500 dollars after taxes. I slept on the floor on a mattress for several
years to pay them back. I also had a 7-year lien as does every tax debtor
which made it impossible to get credit for 7 YEARS. Those who have already
lost so much will simply lose it all over again.

I just hope everyone knows what the possible outcome is for suits against
the government. Because any major win will more likely end up in the hands
of the US government than in yours. So basically the Ticos/foreigners/tourists/retirees
will pay the taxes to pay the lawsuit and in the end every dollar will
end up in the IRS coffers. You can bet on it! The US has massive debts
as well, and they aren't going to let a billion dollars just slip out of
their hands.

I think wise people consider the outcome of their actions. This is one
possible scenario which I think is highly likely. Should the Costa Rican
government raise money to pay a lawsuit settlement that will all end up
in the IRS anyway?

There are no easy answers to any of this. But remember that Uncle Sam
in the form of John Poindexter is in charge of spying on Americans now.
He is familiar with Central America as he was convicted for various crimes
related to the Iran Contra affair. He knows how things work here and will
surely share his information with the IRS to fill the U.S. coffers.

It is always best to seriously consider the outcome of your actions.

I hope that everyone lands on their feet and my heartfelt sympathy goes
to those who have lost money in the tragedy of the Villalobos Brothers.